ByteDance Valued at Over $400 Billion as AI Push Gains Momentum

ByteDance, the parent company of TikTok, has reached a valuation exceeding $400 billion, fueled by its growing dominance in artificial intelligence. The company’s AI chatbot, Doubao, has positioned itself as a key player in China’s tech scene, further reinforcing ByteDance’s market strength.

At least three major investors have marked up ByteDance’s valuation. SoftBank’s Vision Fund raised its estimate beyond $400 billion in December, factoring in Doubao’s potential. Fidelity Investments and T. Rowe Price Group also increased their valuations, setting ByteDance’s worth at over $410 billion and $450 billion, respectively.

SoftBank’s valuation methodology assigns zero value to TikTok’s US operations due to ongoing regulatory scrutiny. However, if the platform avoids a US ban, ByteDance’s overall valuation could climb even higher. Last year’s strong revenue growth and AI-driven expansion played a crucial role in the company’s financial upswing.

The company’s AI chatbot, Doubao, has been a standout success. Since its launch in August 2023, Doubao has outpaced competitors like Baidu’s Ernie Bot, gaining millions of users. As of mid-2024, it became the most downloaded AI chatbot on Apple’s iOS platform in China. In January 2025, ByteDance introduced an upgraded model, Doubao-1.5-Pro, featuring a "Deep Thinking" mode. The new version rivals GPT-4o and Claude 3.5 Sonnet in performance while maintaining a significantly lower operating cost.

ByteDance’s AI ambitions extend beyond Doubao. The company plans to invest over $12 billion in AI infrastructure throughout 2025. This includes securing chips from suppliers such as Huawei and Nvidia and allocating $6.8 billion to overseas AI training facilities. The strategic investments underline ByteDance’s commitment to cementing its position as a leading AI powerhouse in China.

A key factor driving ByteDance’s AI growth is the rise of DeepSeek, a Chinese AI startup that has triggered a wave of renewed investor interest in the sector. DeepSeek’s advancements in large language models and AI-driven search technologies have contributed to a broader market rebound, indirectly benefiting ByteDance’s valuation.

Despite its strong financial trajectory, ByteDance continues to face geopolitical uncertainties. US lawmakers have repeatedly threatened to ban TikTok over national security concerns. However, ByteDance’s core strength lies in its ability to innovate and diversify, ensuring its resilience in an ever-evolving market.

Valuation in billions (USD)

The company’s stock has been highly volatile due to these regulatory risks. While some investors still seek to buy ByteDance shares at a valuation as low as $240 billion, sellers are less willing to accept such terms. The firm’s latest share buyback offer in 2024 was priced at $180 per share, valuing the company at approximately $300 billion – up from $268 billion in 2023.

As China’s tech sector rebounds, ByteDance remains a central player in the AI revolution. With ongoing investments and a rapidly growing AI ecosystem, the company is well-positioned to expand its influence, even as geopolitical challenges persist.